The UK government has armed the DWP with new powers to directly deduct funds from bank accounts in a move to tackle growing benefit fraud concerns.
DWP Granted Authority to Take Money from Bank Accounts in Fraud Fight
By Arezki AMIRI
Published on 20 October 2024 16:29
The Department for Work and Pensions (DWP) is set to receive expanded powers that allow it to directly deduct funds from individuals' bank accounts as part of a major effort to combat benefit fraud in the UK.
Work and Pensions Secretary Liz Kendall has expressed concerns about the evolving tactics of fraudsters, which have outpaced current investigative methods. In an interview with The Telegraph, she emphasized the need for modernized enforcement tools, stating: “We're in an absurd situation where DWP's powers have not been updated for 20 years, meaning fraudsters have new ways of taking public money, and we need to keep pace with them.”
Kendall further added to the inefficiencies of existing processes: “My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to snail's pace when they could be shutting down serious fraud cases.”
DWP New Measures Aim to Save £1.6 Billion Over Five Years
Benefit fraud in the UK is believed to have cost £7.3 billion last year, forcing the government to implement these restrictions in the hopes of recouping £1.6 billion over five years.
This comes at an imperative time, since Chancellor Rachel Reeves is allegedly planning a strict autumn budget that may include tax rises to balance the nation's finances.
However, the newly allowed direct debit capabilities, which allow investigators to recover debts without using judicial action, have raised concerns among privacy activists. Critics believe that such authority may be exploited, unfairly impacting assistance recipients.
Silkie Carlo, director of Big Brother Watch, voiced her objections: “This blank cheque to force private companies to snoop and report on the country's poorest citizens to the state is intrusive, excessive, and will create a culture of fear among millions of people claiming benefits.”
She also criticized the Labour government’s approach, comparing it to “counter-terror investigatory powers” being applied for welfare fraud cases.
Government Defends the Move
Despite the backlash, Kendall defended the decision, insisting that it is necessary and proportionate in order to curb widespread fraud. She reiterated the need for swift action, explaining that “we are taking bold steps to ensure this power is proportionate and targeted.”